What do we do with provision for bad debts in balance sheet?
Added to debtors account
Deducted from debtors account
Added to creditors account
Deducted from creditors account
The concession allowed, when debtors make immediate payment is known as:
Bad debts
Provision
Discount
New provision
Discount is allowed for:
Written off debts
Doubtful debts
No debts
Creditors
Which word is used as no individual names, dates and amount details have been provided?
Debtors written off
Unpaid amount
Loss
Writing off bad debts is an example of:
Materiality principle
Consistency principle
Prudence principle
Disclosure principle
Where will be the difference between provision for bad debts posted?
Profit and loss account
Balance sheet
Journal
Ledger
At the end of the year, bad debts recovered account is transferred to the bad debts account. This will be:
Loss of the year
Reduces the bad debts written off during the year
Not affect at all
Increases the profit
Bad debts recovered is treated as a:
Dependent income
Independent income
Dependent loss
Independent loss
The establishing of a credit limit and the later monitoring of the debtors account is known as:
Credit limit
Credit
Credit control
Over credit
Out of this, which principle is followed in case of provision for doubtful debts?
Matching principle
Historical principle
Revenue recognition principle
